Watch The FED Balance Sheet

At some time, after it explodes its Balance Sheet, the FED will unload the junk and it will result in most likely massive inflation. One way to drive down debt. Today the FED said:

To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee will continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month. The Committee also will purchase longer-term Treasury securities after its program to extend the average maturity of its holdings of Treasury securities is completed at the end of the year, initially at a pace of $45 billion per month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and, in January, will resume rolling over maturing Treasury securities at auction. Taken together, these actions should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative. 

 Reading between the lines it will accepts tons more junk.But as we noted a brief while ago the FEDs BS is already over bloated and yet the banks have kept stuff still on the books.

So what to do? Good question. It starts to feel like 1920s Germany all the time. Did we lose the War, what War?

Oh and yes, the leftists have praised this move. Just remember the systemic loss of some 20+ million employed.